NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Pediapharm Inc. ("Pediapharm" or the "Corporation") (TSX VENTURE:PDP) announces the termination of its promotional sales agreements with Sanofi Canada for Suprax® and AllerjectÔ, effective June 30, 2014. Although this will impact the revenues for the second-half of 2014, it will allow the Corporation to focus its commercial efforts on its core brands, such as NYDA, a revolutionary treatment indicated for eradication of head lice and its eggs. Furthermore, the Corporation is deploying substantial efforts to obtain the approval of one of its innovative asthma products with the Canadian health authorities.

Also, Pediapharm is pleased to announce the engagement of Bloom Burton & Co., a firm dedicated to accelerating monetization for both investors and companies alike in the healthcare sector. Bloom Burton & Co. will have a specific mandate to accelerate the Corporation's efforts to complete product acquisitions. Pediapharm's strategic focus remains to partner with leading healthcare entities around the world to bring innovative pediatric products to the Canadian market.

Brian Bloom, President of Bloom Burton & Co. says, "We are proud to partner with Pediapharm to explore new avenues to leverage the company's unique infrastructure, expertise and relationships with pediatric physicians and patient groups. There are tremendous opportunities in the Canadian specialty pharmaceutical market for both companies and investors, and we view Pediapharm as a leading emerging company in this sector."

About Pediapharm Inc.

Pediapharm is the only Canadian specialty pharmaceutical company dedicated to serving the needs of the pediatric community. Its mission is to bring to the Canadian market the latest innovative pediatric products with the objective to improve the health and the well-being of children in Canada. Since its debut in 2008, Pediapharm has entered into numerous commercial agreements with partners from Canada and other countries around the world. The company's innovative product portfolio includes NYDA®; a breakthrough treatment for head lice; EpiCeram® a non-steroid emulsion for eczema; KoolEffect™ which reduces the symptoms of fever; and VapoLyptus™; a soothing vapour patch of Eucalyptus and Camphor.

About Bloom Burton & Co.

Bloom Burton & Co. is a firm dedicated to accelerating monetization for both investors and companies alike in the healthcare sector. Bloom Burton has an experienced team of medical, scientific, pharmaceutical, legal and capital markets professionals who perform a deep level of diligence, which combined with a creative and entrepreneurial approach, assists to lead to our clients to the appropriate monetization events. Bloom Burton and its affiliates provide capital raising, M&A advisory, equity research, business strategy and product development consulting and also create and incubate new biotechnology and healthcare companies. Please visit www.bloomburton.com to learn more.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and other statements that are not historical. Such forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from target results and the results or events predicted in these forward-looking statements. As a result, investors are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking information reflects the current expectations or belief of the Corporation based on information currently available and such information is subject to a number of assumptions, risks and uncertainties described in details at pp. 35 to 41 of the Management Information Circular of Chelsea Acquisition Corporation dated November 12, 2013 available on SEDAR at www.sedar.com and other risks associated with being a specialty pharmaceutical company.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.